On Wednesday, U.S. Energy Secretary Jennifer Granholm said that the Biden administration is considering releasing emergency oil stockpiles as one of several alternatives for easing a worldwide energy crisis that has resulted in rising consumer costs. During an interview at the Financial Times’ Energy Transition Strategies Summit on Wednesday, Granholm said, “It’s a tool that’s under consideration.” This week, gas prices in the United States soared to $3.21 per gallon, the highest level in seven years.
GasBuddy’s head of petroleum analysis, Patrick De Haan, predicted that prices might hit $3.30 per gallon by the end of the month. The Strategic Petroleum Reserve is described on the Department of Energy’s website as “the world’s largest supply of emergency crude oil.” The reserve, which is held at four locations around the Gulf of Mexico’s coast, was “created largely to mitigate the impact of disruptions in petroleum product supplies and to carry out the United States’ duties under the worldwide energy programme.”
At least three times, strategic oil reserves have been released. The most recent sale was in 2011 when the Obama administration sold 30 million barrels of crude oil to relieve consumer price pressure as global supplies were hampered by instability in Libya. To address domestic supply concerns, Granholm stated the U.S. might contemplate a crude oil export embargo. As nations recover from the COVID-19 pandemic, energy providers have been slow to meet the rising demand for petroleum products.
Prices rose sharply this week after OPEC countries refused to increase production quicker than planned. As nations recover from the COVID-19 pandemic, energy providers have been slow to meet the rising demand for petroleum products. As a result, prices rose sharply this week after OPEC countries refused to increase production quicker than planned.